THE PRESIDENT: Thank you very much. Thank you for the warm welcome.
Good evening. I appreciate that kind introduction -- Jeb. (Laughter.)
And I thank you for bringing Melissa, too.

It's my honor to be with you. I can't thank you enough for coming to
support our candidates running for the United States House, the United
States Senate, and for the White House. I appreciate my friends from
the Congress who are here. I especially want to pay tribute to Senator
Mitch McConnell, Senate Republican Leader, Congressman John Boehner,
House Republican Leader. (Applause.) Senator John Ensign, the Chairman
of the NRSC -- (applause) -- who, by the way, brought his son, Michael.
Congressman Tom Cole, Chairman of the NRCC. (Applause.) A man who
deserves a lot of credit, along with Jeb, for tonight's success, my
friend from the state of Utah, Senator Orrin Hatch. (Applause.) I
thank the RNC Chairman, Mike Duncan; all those here at the head table
for their leadership in making this an incredibly successful event.

Most of all I want to thank you all for coming, for giving of your time
and your money to help us achieve a big victory in November of 2008.
(Applause.)

This is my eighth President's Dinner -- also known as my last dinner
before mandatory retirement. (Laughter.) I can't say for sure what I'm
going to be doing at this time next year -- I suspect I'll be in
Crawford, watching the Rangers on TV. But I know what you'll be doing
-- you'll be holding this dinner in honor of a new guest: President
John McCain. (Applause.)

I know John McCain well. I have worked with him, and I have run against
him. Take it from me: It's better to have him on your side.

The stakes in this election are high. I know the pressures of the Oval
Office -- the daily intelligence briefings, the unexpected challenges,
and the tough decisions that can only be made at the President's desk.
In trying times, America needs a President who has been tested and will
not flinch. We need a President who has the experience and judgment to
do what is right, even when it is not easy. We need a President who
knows what it takes to defeat our enemies. And this year, there is only
one man who has shown those qualities of leadership -- and that man is
John McCain. (Applause.)

Sending John to the White House is a great goal, but it's not our only
goal. As President, he's going to need strong conservative allies on
Capitol Hill. And that means we need to put the House and the Senate
back where they belong -- into Republican hands. (Applause.) And I
appreciate you coming tonight to see that is exactly what happens.

You know, this election season is just beginning. The real campaign
will be in the fall. And the American people will take the measure of
the candidates running and their vision for the future. And when they
do, they're going to find some big differences between our parties. On
issues that matter the most -- from taxes and spending, to confirming
good judges and building a culture of life, to protecting our people and
winning the war on terror -- the American people will have a clear
choice. And after the speeches and the debates and when the American
people focus on what matters to their future, they're going to send
Republican candidates to the House, Republican candidates to the Senate,
and John McCain to the White House. (Applause.)

This November, the American people are going to have a clear choice when
it comes to taxes and spending.

Republicans believe American families can spend their money far better
than the federal government can. We've restrained spending in
Washington, D.C. We delivered the largest tax cut since Ronald Reagan
was the President of the United States. (Applause.) We cut taxes for
married couples. We cut taxes for families with children. We cut taxes
for small businesses. We cut taxes on dividends and capital gains. We
put the death tax on the road to extinction. We eliminated income taxes
for nearly 5 million families in the lowest tax bracket. And as a
result, the American people have more money in their pocket and that is
the way it should be. (Applause.)

Our opponents take a different view. The Democratically-controlled
Congress refuses to make the tax relief permanent. And when tax relief
expires, every income tax rate in America will go up. The marriage
penalty will return in full force. The child tax credit will be cut in
half. Taxes on capital gains and dividends will increase significantly.
The death tax will return to life. A typical family of four with an
income of $40,000 will face a tax increase of more than $2,000. At a
time when the American people are struggling with high food [prices],
high gas prices, and economic uncertainty, the absolute last thing they
need is a tax increase. (Applause.) In order to make sure that doesn't
happen the American people need to elect a Congress and a President that
will make the tax relief permanent. (Applause.)

There's a reason why the Democrats want to raise taxes -- they need more
money to pay for all the new spending they have in mind. When the
Democrats campaigned in 2006, they promised fiscal responsibility. But
when they took control of the Congress, they tried to go on a spending
spree and stick the American people with the tab. Over the past 17
months, Democrats in Congress have routinely filed legislation with
excessive spending. But there was an important thing that stood between
them and the American people paying more in taxes, and it's called a
veto pen. (Applause.)

You know, when it comes to taxes and spending, our opponents offer a lot
of soothing words. But keep this in mind: While their talk may be
cheap, their agenda isn't. And here's the bottom line: If you want a
bigger tax bill and bigger government, put the Democrats in charge of
both the White House and Capitol Hill. But if you want to keep your
taxes low and stop wasteful spending, elect John McCain and a Republican
Congress. (Applause.)

This November, the American people will have a clear choice when it
comes to confirming good judges and building a culture of life.
Republicans aspire to build a society where every human being is
welcomed in life and protected in law. We've funded crisis pregnancy
programs and supported parental notification laws. We outlawed the
cruel practice of partial birth abortion. We defended this good law all
the way to Supreme Court -- and we won. (Applause.)

This victory shows how important it is to put good judges on the bench.
Republicans have a clear view of the role of courts in our democracy.
We believe that unelected judges should strictly interpret the law, and
not legislate from the bench. I've nominated and Congress has
confirmed good judges, including the two newest members of the Supreme
Court -- Justice Sam Alito and Chief Justice John Roberts. (Applause.)

Our opponents have a different view. There's no clearer illustration of
their differences in our judicial philosophies than this: John McCain
voted to confirm these eminently qualified Supreme Court justices. His
opponent voted against them.

We received a fresh reminder of the importance of the courts last week.
A bare majority of five Supreme Court justices overturned a bipartisan
law that the United States Congress passed and I signed to deliver
justice to detainees at Guantanamo Bay. With this decision, hardened
terrorists -- hardened foreign terrorists now enjoy certain legal rights
previously reserved for American citizens. This is precisely the kind
of judicial activism that frustrates the American people. And the best
way to change it is to put Republicans in charge in the Senate and John
McCain in the White House. (Applause.)

This November, the American people will have a clear choice when it
comes to protecting our country and winning the war on terror.

Republicans believe that our most solemn duty is to protect the American
people. Since September the 11th, 2001, we have worked day and night to
stop another attack on our homeland. Here at home, we've strengthened
our defenses, reformed our intelligence community, and launched a new
program to monitor terrorist communications. Around the world, we have
gone on the offense against the terrorists, we've advanced freedom as
the great alternative to the ideology of hatred and violence. In a time
of war we need a President who understands that we must defeat the enemy
overseas so we do not have to face them here at home -- (applause) --
and that man is John McCain. (Applause.)

In Afghanistan, we destroyed al Qaeda training camps and removed the
Taliban from power. And today we're helping a democratic society take
root -- ensuring that Afghanistan will never again be a safe haven for
the terrorists planning an attack on America.

And in Iraq we removed the dangerous regime of Saddam Hussein. Removing
Saddam Hussein was the right decision at the time, and it is the right
decision today. (Applause.) Early last year, when the situation in
Iraq was deteriorating, we launched what's called the surge. And since
the surge, violence in Iraq has dropped. Civilian deaths and sectarian
killings are down. And political and economic progress is taking place.
A democracy is taking root where the tyrant once ruled. In Iraq and
Afghanistan and around the world, our men and women in uniform are
performing with skill and honor -- and our country needs a
Commander-in-Chief who will respect and fully support the United States
military, and that man is John McCain. (Applause.)

The war on terror is the great challenge of our time. And on this vital
issue, the Democratic Party has repeatedly shown it would take America
down the wrong direction. Democratic leaders in Congress have yet to
renew a surveillance law that our intelligence professionals say is
critical to protecting America. They tried to shut down a CIA program
-- CIA program for questioning terrorists, a program that has saved
American lives. They've repeatedly delayed funding for our troops in
the field.

On Iraq, the Democrats declared the surge a failure before it began.
And now that the surge has turned the situation around, they still call
for retreat. The other side talks a lot about "hope," and that sums up
their Iraq policy pretty well: They want to retreat from Iraq and hope
nothing bad happens. But wishful thinking is no way to fight a war and
to protect the American people. (Applause.) Leaving Iraq before the
job is done would embolden our enemies and endanger our citizens. The
only path to victory is to support the Iraqi people, support our
commanders, support our troops, support Republicans for Congress, and
elect John McCain as the next Commander-in-Chief. (Applause.)

Over the next few months of this campaign, you're going to hear a lot of
talk about change. Democrats say they're the party of change. There
was a time when they believed that low taxes were the path to growth and
opportunity -- but they've changed. There was a time when they believed
in common-sense American values -- but they have changed. There was a
time when they believed that America should pay any price and bear any
burden in the defense of liberty -- but they have changed. These days,
if you want to know how a Democrat in Congress is going to vote
tomorrow, just visit the website of MoveOn.Org today. (Applause.)

This is change alright, but it's not the kind of change the American
people want. Americans want change that makes their life better and our
country safer -- and that requires changing the party in control of the
United States Congress. (Applause.) So with your efforts and with your
hard work, I am confident that the American people will send Republicans
to Congress -- and to send our friend John McCain to the White House.
(Applause.)

This is the final time I'm going to speak to this event. And when I ran
for President eight years ago, as Jeb mentioned, I promised to uphold
the dignity and honor of this office. And to the best of my ability, I
have tried to live up to that promise. (Applause.) Next January I will
leave with confidence in our country's course -- and the proud work we
have done together.

We've worked together to make our country safer and to spread prosperity
throughout our land. I've been strengthened by your support and lifted
up by your prayers. I've also been blessed to share these years with a
strong and loving family, including a fabulous woman named Laura Bush.
(Applause.) I believe she's the finest First Lady in our nation's
history. (Applause.) Just don't tell Mother. (Laughter.) And in this
job, I have had no finer example of character, decency, and integrity
than the first man to be called President George Bush. (Applause.)

This isn't a farewell speech because we've got a lot to do this year. I
want you to know my energy is up, my spirits are high, and I am going to
finish this job strong. (Applause.) So with confidence in our vision,
strong belief in our philosophy, faith in our values, let us go forward,
reclaim the Congress, and elect John McCain as President in 2008.